Challenges ahead

As the economic outlook darkens, the challenges facing the voluntary sector have never been greater. The impact that faltering global markets will have on UK charities will become one of the key issues to dominate the sector in the months and years to come.

This supplement touches on the economic and logistical challenges facing large charities and small community groups working at the coalface of social change in the UK. At a time when the work of charities has never been so crucial, the futures of many hang in the balance as a squeeze on funding continues.

We examine whether charities are taking advantage of the rise of venture philanthropy and the new breed of hugely wealthy givers. We also analyse the issue of commissioning, considered by some to be the sector's greatest opportunity and others its biggest threat. With the voluntary sector growing in size and number, the number of new volunteers is falling for the first time since 2001. Is the word "volunteer" to blame?

Vivienne Hayes, chief executive of the Women's Resource Centre, spells out the need for organisation in the face of adversity and we hear from recruitment specialists who believe the credit crunch will actually help the sector get the personnel it needs to weather the storm ahead.